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Understanding business etiquette in international trade

by Leigh Goessl

Created on: April 23, 2008   Last Updated: December 21, 2008

Over the years business dynamics have evolved to reflect the growth of a global environment. In years past specific formulas and protocols were followed when businesses operated on a domestic level but this has all changed because of an expanded economy. Additionally the technological capabilities have grown which allow companies to spread their wings and operate on an international level.

As business deals continue to increase and reach to far ends of the globe more business is conducted on an international level. It has become increasingly important to understand how to proceed with being mindful of keeping proper business etiquette prominently in mind when looking to engage in trade with other nations.

When your business expands to include partnerships or to commence with trading within different countries you are going to encounter a lot of diversity and different belief systems when carrying out business communications. As you approach these business transactions, it is important to keep both an open mind and maintain proper business etiquette.

In Western business situations the joint venture is usually business centric, but this is not the same in the Far East. The etiquette approaches to conducting business in the two hemispheres is often very different. When Western countries do business in the Far East there are different customs which should be observed and understood before doing business. If these are disregarded it is likely you will be unsuccessful in your attempts to engage in international trade.

Many Far Eastern countries prefer to get to know the people they are considering doing business with prior to entering any kind of business deal. It is customary for businessmen to invite their potential business partners or clients to several social activities first. In this culture it is preferred that a level of trust is established prior to beginning a business deal.

Once the fundamentals of a faithful relationship are established business will then usually be allowed to commence. If Western countries do not embrace this ideology they will likely find their attempts of doing business with these countries to be met with resistance or flat out denial.

Another aspect to consider is the clock. There are some countries which operate on a time based system where appointments are expected to be exact and lateness is not tolerated. This kind of ideology isn't the same everywhere. In some countries lateness is expected and/or acceptable because it is the way things are normally done.

For instance if an appointment is at 9:00 a.m., this could mean 9:30 or even 9:45 in the morning and would be perfectly acceptable. Some businesses who operate strictly by the clock may find it hard to adapt to this type of approach, but usually find its necessary if a successful relationship is going to be developed to work with companies located in other nations.

International trade opens up all kinds of opportunities, but when looking at putting together a deal, it is important for you to consider local customs and subsequently work hard to accommodate those traditions. Keep in mind that from time to time conflicts in values or customs do occur. In order to effectively establish a working relationship it is essential to do your research and get to know how the local businesses operate.

Once you have a better understanding of how things work, you'll be able to better effectually engage in international trade business deals.

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